Claiming compensation after a car accident may seem straightforward. However, you shouldn’t be shocked by a denied claim or a settlement offer that doesn’t cover your damages. For starters, you should inform your insurance provider about the accident. If the other involved party was responsible, you should file compensation claims through their insurance company.
Unfortunately, insurance adjusters don’t look out for the accident victim’s best interests. They’ll explore all possible ways to reduce or deny compensation. This underscores the importance of working with a car accident lawyer. Common reasons used by auto insurance companies to deny claims include:
1. Shared liability
It is not uncommon for insurance companies to deny compensation claims based on shared liability faults. If you partly contributed to the accident, your compensation might be affected. Most states use the modified comparative negligence system, which awards victims’ compensation depending on their level of responsibility towards the accident. You should be eligible for compensation if your portion of the fault doesn’t exceed 50%. However, insurance companies will argue that you should be responsible for your injuries since you admitted your fault for the accident or expressed guilt.
2. Failing to notify the insurance company
Unfortunately, most people don’t know they should notify their insurance providers within a given period after the accident. Insurance companies usually require compensation claims to be filed within 30 days. The specific deadline varies based on the policy taken. You should review the policy to determine the time allowed to file the claim.
You should file the claim before the expiry of the statute of limitations. State laws have deadlines for filing personal injury claims ranging from two to four years. Failing to file your claim before the expiry of this deadline voids your opportunity to demand compensation.
3. Insufficient coverage
Insurance companies are only required to pay out what’s indicated in your policy limits. As such, the company won’t compensate claims exceeding policy limits. For instance, if your bodily injury liability policy carries a maximum of $25,000, you shouldn’t expect the company to pay your medical costs of $50,000.
4. Expired insurance policy
The policyholder should have an active insurance policy for the company to pay out compensation. This essentially means the person should have made timely payments. If the policy has expired, the insurance company is not obligated to compensate you for the injuries and damages. If the liable party has no active policy, you can still file for compensation from your insurance company’s personal injury protection coverage.
5. Illegal activity
Insurance companies can also reject insurance claims if the policyholder was breaking the law when the accident occurred. For instance, the company won’t pay compensation claims if the liable driver caused the accident while drunk.
Endnote
Most people don’t expect their car accident claims to be rejected by insurance companies. The claim can still be denied, even if the victim didn’t contribute to the accident. An experienced car accident lawyer can reduce the odds of getting a rejection. If your claim is denied, the lawyer evaluates the reasons for the denial and suggests the next possible steps.
